Abstract
A methodology is proposed to calculate the economic value of windpower, taking into account the volatility of wind velocity and the value of clean air. Investment in backup immunizes against wind volatility and an algorithm is proposed for exploiting the power curve in an optimal way, and for calculating capacity credit. The methodology is illustrated for a windpower site in Israel. This suggests that the stochastic nature of the wind does not greatly reduce the economic viability of windpower.
Original language | English |
---|---|
Pages (from-to) | 27-37 |
Number of pages | 11 |
Journal | Energy Economics |
Volume | 17 |
Issue number | 1 |
DOIs | |
State | Published - Jan 1995 |
Keywords
- Capacity credit
- Cost-benefit analysis
- Windpower